If you have been bootstrapping and think you are ready for investors, you need to learn how investors think. First, please study our free Bootstrapping course and Investor Introductions page. Then start looking for entrepreneur – investor fit. Today I introduce you to Yanev Suissal.
Yanev Suissa is General Partner at SineWave Ventures out of Washington DC and Silicon Valley. The firm invests alongside some major firms like Andreessen Horowitz and NEA. Yanev talks about how they invest, and also the trends he sees. You can listen to the podcast interview here.
Sramana Mitra: So tell us about SineWave Ventures. What is the focus of your firm? How big is the fund? What size investments do you make?
Yanev Suissa: SineWave mainly works with enterprise technology startups similar to the ones in the 1Mby1M network. We look for commercial technologies where we can help them as a VC firm in navigating both commercial and public sector partnerships.
Sramana Mitra: One of the areas that I am watching closely is Platform-as-a-Service (PaaS). I don’t know if you read some of my writing but I have been writing about this for about a year or more. I have had lots of conversations with lots of companies that are either already doing PaaS strategy or trying to PaaS strategy.
This is the classic Salesforce model where they started with a SaaS CRM application and then opened up their platform for developers to build applications around which led to the creation of the app exchange marketplace to sell through. This is a model that is being replicated by several players. Atlassian has done a nice job of it.
>>>Sramana Mitra: What about geography? Are you only doing Silicon Valley?
Cindy Padnos: No, we always had a broader view in that as well. We’ve had companies in New York, Philadelphia, Pittsburgh, Chicago, Canada, and Southern California. We have always had a broader view. My partner, Jennifer is in Seattle. We look deeply into the Pacific NorthWest as well.
Sramana Mitra: So it’s all North America?
>>>Alok Nandan, Founding General Partner, First Rays Venture Partners, discusses the firm’s investment thesis which is very well defined and focused.
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Cindy Padnos: I don’t know if you know Neha Sampat, but she has a company called Contentstack. It is in the digital experience management space. We led her seed round of financing that enabled them to go from $1 million in ARR to over $4 million in less than a year. This was done with just a $2 million financing. This was rather extraordinary. Insight Partners then led a $30 million series in the company about a year later. She and her team had bootstrapped by having an IT services business.
>>>Michael Smerklo is Co-founder and Managing Director at Next Coast Ventures. We have a terrific conversation about a range of issues including solo founders and their ill treatment by VCs.
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Sramana Mitra: Were they Americans? What ethnicity were they to move to South Korea?
Cindy Padnos: No, one of the founders is Chinese. The other is Indian. They were both born in their respective countries, but they were educated here in the US. They helped to build several companies here. The CEO had actually been the VP of Engineering of the company that I founded, which was an early SaaS software company.
>>>In case you missed it, you can listen to the recording here: